Topic
#income tax
3 articles
Year-End Bonus in Malaysia 2026: How Much Goes to Tax, EPF and SOCSO, With Worked Examples
A year-end bonus in Malaysia is taxed in the year you receive it, not the year it rewards, so a bonus paid in December 2026 falls under the 2026 tax rules and one paid in January 2027 under Budget 2027's new rates and RM12,000 personal relief. EPF takes 11% of it, SOCSO and EIS take nothing, and the monthly tax deduction in the bonus month is only an estimate. Here is how each deduction works, with two worked examples.
Zakat and Income Tax in Malaysia 2026: How the Rebate Works, the 31 December Cutoff, and This Year's Nisab
Zakat paid to a state zakat authority comes straight off your income tax bill, ringgit for ringgit, but only up to the tax you owe and only in the year you pay it. Here is how the rebate works, why 31 December matters, the 2026 nisab in KL, Selangor and Penang, and how salary deduction cuts your monthly PCB.
Budget 2027 Income Tax Changes: Two Lower Rates, a RM12,000 Personal Relief, and What You Actually Save
Budget 2027, tabled on 9 October 2026, cuts the resident tax rate on chargeable income between RM70,001 and RM150,000 by one point, raises the personal relief from RM9,000 to RM12,000 for the first time since 2010, and widens six existing reliefs to cover postnatal care, sports shoes, children's tuition, AI subscriptions and pet adoption. Income above RM1 million now hits 30% instead of 28%. Everything starts from the year of assessment 2027, so it applies to income earned in 2027 and the return you file in 2028. We read the figures off the Finance Ministry's own tax-measures annex and worked out what five salary levels save.